Tether launches USDT emergency recovery tool


Key facts:
  • Tether reported that it will reimburse users in cases of losses due to a network outage.

  • USDT is issued on 15 networks, including Ethereum, Tron, and BNB Chain.

Tether, a company that issues and manages the main stablecoin on the market, USDT, presented a recovery tool for its cryptocurrency. The goal of the new recovery plan is to address potential outages or serious issues on any network where USDT is available.

In the statement, Tether explains its “proactive measures” to ensure that holders of USDT can access their funds regardless of any problem in one of the networks where it is issued. “USDT exists beyond blockchains, which are used only as a means of transportation,” the text justifies.

Among the networks where USDT is issued, Tron, Ethereum and BNB Chain stand out. In total, the cryptocurrency has a market capitalization of USD 99,735 million and dominates 70% of the stablecoin market.

To address the risk of a network becoming “unreliable or unusable,” Tether offers an official recovery tool that provides the ability to migrate USDT from one network to another. “Users would be able to verify ownership of their addresses on a non-operational network and a recipient address on another supported network and Tether will transfer USDT between them,” the company promises.

USDT networks.
The top 10 networks where USDT is issued. Source: defillama.

To be able to use this function, users will have a friendly and simple interface platform, to which It can be accessed through the web or through tools that use command lines. The tool, which has not yet been made available to the public, will have support for wallets such as Ledger and Trezor. The process involves signing a crypto migration request to prove ownership of the tokens in question.

Tether is a lifeline for hundreds of millions of users around the world. It is especially important in emerging markets and developing countries, where people rely on USDT in their daily lives, both for savings and payments. As part of honoring our users’ trust in USDT, Tether considers it essential to ensure that USDT will never be at risk, even in highly unlikely and catastrophic scenarios.

Tether statement.

Although the company ensures that before supporting a new network for the issuance of USDT, a due diligence process is carried out to evaluate potential risks, “there is always a danger of technical difficulties.” “Although catastrophic failures are unlikely, Tether’s commitment to user security requires protecting its assets in any of these scenarios,” they argue.

Despite this consideration of Tether, some of the networks where the stablecoin is issued have had technical problems in the recent past. This is the case of Arbitrum, Solana and Avalanche, all cases with different particularities discussed in CriptoNoticias.

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